2. Accounting for trade in goods and services Consider the following transactions that occur during the current year: 1. Sean, a liquor store owner in Canada, orders 30 bottles of champagne from a French distributor at a price of $75.00 per bottle. 2. A Canadian company sells 100 transistors to a Spanish company at $15.00 per transistor. 3. Bob, a Canadian citizen, pays $1,100 for a computer he orders from Dellosoft (a Canadian company).

2. Accounting for trade in goods and services Consider the following transactions that occur during the current year: 1. Sean, a liquor store owner in Canada, orders 30 bottles of champagne from a French distributor at a price of $75.00 per bottle. 2. A Canadian company sells 100 transistors to a Spanish company at $15.00 per transistor. 3. Bob, a Canadian citizen, pays $1,100 for a computer he orders from Dellosoft (a Canadian company).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Assume an economy with a coal producer, a steel producer, and some consumers. (There is no government.) In a given year, the coal producer produces 35 million tonnes of coal and sells it for $5 per tonne. The coal producer pays $80 million in wages to consumers. The steel producer uses 55 million tonnes of coal as an input into steel production, all purchased at $5 per tonne. Of this, 35 million tonnes of coal comes from the domestic coal producer, and 20 million tonnes is imported. The steel producer produces 14 million tonnes of steel and sells it for $40 per tonne. Domestic consumers buy 12 million tonnes of steel, and 2 million tonnes are exported. The steel producer pays consumers $70 million in wages. All profits made by domestic producers are distributed to domestic consumers. a. Determine GDP using (i) the product approach, (ii) the expenditure approach, and (ii) the income approach. (i) Using the product approach, the value added by the coal producer is $ million, the value…
Refer to the diagram to answer the following: a. The movement from point A to point B represents: b. The movement from point B to point C represents: c. The movement from point A to point C represents Real GDP per hour Worked Y/L ($, 000) 1,000 900- 800- 700- 600- 500- 400 200- 100- Aggregate Production 0 ljuds 300-midifi E Tommyformemberit A 8 D 20 40 00 80 Capital per hour worked K/L (5,000) 100 O Q
6
Assume an economy with a coal producer, a steel producer, and some consumers. (There is no government.) In a given year, the coal producer produces 15 million tonnes of coal and sells it for $5 per tonne. The coal producer pays $60 million in wages to consumers. The steel producer uses 40 million tonnes of coal as an input into steel production, all purchased at $5 per tonne. Of this, 15 million tonnes of coal comes from the domestic coal producer, and 25 million tonnes is imported. The steel producer produces 19 million tonnes of steel and sells it for $15 per tonne. Domestic consumers buy 11 million tonnes of steel, and 8 million tonnes are exported. The steel producer pays consumers $70 million in wages. All profits made by domestic producers are distributed to domestic consumers. a. Determine GDP using (i) the product approach, (ii) the expenditure approach, and (ii) the income approach. (1) Using the product approach, the value added by the coal producer is $million, the value…
565995 CALCULATIONS Capital Goods 16 755559 CH 14 13 12 11 10 0 1 2 More ← Saving 3 Consumption Goods Produced Capital Goods Produced 4 5 6 7 8 Production Possibilities (Present) Production Possibilities (Future) 9 10 11 12 13 14 15 Consumption Goods More Consumption 4.0 7.5 Help Save & Exit
7:54 Take Quiz Exit Question 4 1 pts Gross Domestic Product (GDP) is calculated as the sum of the total number of production of final goods and services produced domestically for specified period of time total number of production of final goods and services produced for specified period of time total market value of production of final goods and services produced domestically for specified period of time total number of production of final goods and services produced for specified period of time Question 5 1 pts Suppose Chevrolet produced 90,000 Camaros cars in the United States in 2011. Sold 69,000 cars domestically and exported 14,000 to foreign countries in 2011. The remaining Camaros were sold domestically in 2012. The market value of how many of these Camaros wLpe Counted as part of the
Suppose that consumers purchase fish and computer chips. In 2010, 1 pound of fish cost $1, a computer chip cost $1, and the typical consumer bought 10 pounds of fish and 10 computer chips. In 2011, 1 pound of fish cost $2, a computer chip cost $0.50, and the typical consumer bought 5 pounds of fish and 20 computer chips. In 2012, 1 pound of fish cost $2.10, a computer chip cost $0.90, and the typical consumer bought 12 pounds of fish and 20 computer chips. Using 2011 as the base year, the inflation rate between 2011 and 2012 is _____ percent.
Let us use what we have learned in the first part of the chapter to compare living standards in the United States and a hypothetical country, Argonia, in 2008. The U.S. GDP in 2008 was approximately $14 trillion, and the U.S. population was approximately 300 million. What was the per capita GDP in the United States in 2008? Suppose that in the local currency, Argonian dollars, Argonia’s GDP in 2008 was 1 trillion, and its population was 10 million. What was Argonia’s GDP per capita in Argonian dollars? What problems do you foresee in comparing this number to the U.S. GDP per capita in U.S. dollars computed in part (a)? The Argonian dollar/U.S. dollar exchange rate was equal to 6 on January 1, 2008 (meaning that 1 U.S. dollar was worth 6 Argonian dollars) and reached 9 on August 1, 2008. Compute an exchange-rate-based measure of the GDP per capita in Argonia in U.S. dollars on these two dates. Do you think the change in Argonia’s exchange-rate-based measure of GDP per capita…
To answer Questions #1 through #4 use the following information: Suppose that in the nation state of Raleighville there are 2 final goods produced in the economy - dog food and kitten chow. Suppose the economy produces 15 units of dog food and 5 units of kitten chow in 2000 (the base year), and 20 units of dog food and 10 units of kitten chow in 2020. Further suppose the price of dog food was $1.00 per unit in 2000, and $3.00 per unit in 2020; whereas the price of kitten chow was $1.00 in 2000 and $2.50 in 2020. What was the nominal GDP for Raleighville in 2000? O a. $20.00 O b. $30.00 $57.50 O d. $85.00 Next page
The following table pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. Price of a Toy Price of Meat (Dollars per pound) (Dollars per toy) 3 Year 1 2 3 1 4 Refer to Table 25-2. The cost of the basket 2 7 5 increased from Year 1 to Year 2 and increased from Year 2 to Year 3. increased from Year 1 to Year 2 and decreased from Year 2 to Year 3. decreased from Year 1 to Year 2 and increased from Year 2 to Year 3. decreased from Year 1 to Year 2 and decreased from Year 2 to Year 3.
Suppose that there are only two goods produced in an economy haircuts and banking services. Prices, quantities, and the number of workers occupied in the production of each good for year 1 and for year 2 are given in the table below Year 1 Year 2 P₁ Q₁ W₁ P₂ Q₂ W₂ Haircuts 7 120 50 9 120 50 Banking 7 190 50 9 220 60 Nominal GDP in year 1 is S (Enter your response to the nearest dollar) Nominal GDP in year 2 is S (Enter your response to the nearest dollar) Using year 1 prices, real GDP in year 2 is $ (Enter your response to the nearest dollar) The growth rate of real GDP is % (Round your response to two decimal places) The rate of inflation using the GDP deflator is % (Round your response to two decimal places) Using year 1 prices, real GDP per worker in year 1 is $ (Round your response to two decimal places) Using year 1 prices, real GDP per worker in year 2 is $ (Round your response to two decimal places) The growth rate of labor productivity between year 1 and year 2 for the whole…
Formula for the relationship between the purchasing power of the U.S. dollar and the price level. The purchasing power of the U.S. dollar is ( directly, inversely ) related to the price level: when the consumer price index (CPI) goes up, the value of the dollar goes (down, up ). Higher prices ( increase, decrease) the dollar’s purchasing power because people need (fewer, more ) dollars to obtain specific quantity of goods and services. Value of the dollar ($V) =